68. The council of a municipality, from which any territory is detached, is alone authorized and obliged to settle with the creditors the common debts and obligations.
But in case a whole municipality, ceasing to form by itself a separate municipality, is dismembered and must be annexed to one or more municipalities, or form two or more new municipalities, or be in part annexed to one or more municipalities and in part form one or more new municipalities, the only municipal council authorized and obliged to settle with the creditors the common debts and obligations shall be that which governs the territory containing, within its boundaries, the place where the council held its sittings at the time of such dismemberment or division.
If, in the case of the foregoing provision, the place where the council held its sittings at the time of the dismemberment or the division was in a village or town municipality apart from the territory so dismembered or divided, the only municipal council authorized and obliged to settle with the creditors the common debts and obligations shall be that which governs the territory containing, within its boundaries, the largest portion of the divided or dismembered municipality.
M.C. 1916, a. 53; 1922 (1st sess.), c. 80, s. 6.